How to put stop loss?

Price is 100.

  1. i buy stock at 100 through buy window ( by pressing F1)

  2. i have this stock in my account.

  3. now i should press F2 (sell window) , select the SL option in order type , and entered the amount ( suppose say 95 Rs. - Stop loss amount ), is this correct.

  4. now i sell a stock at 100 rs

  5. now i should press F1 to put stopp loss - ( say 105 rs.)

Is this method is correct ? i am new . please help.

Yes you are correct.

In stop loss itself you have two types.

  1. SL-L (Stop Loss - Limit order)
  2. SL-M (Stop Loss - Market order)

You can use any one of these. Assume you buy [email protected] and sell at Stop [email protected]

Then you need to set the following

  • For SL-M, set Trigger price as 95, you cannot set Price column since this is market order, it will get executed at whatever market price is available once trigger of 95 or below it, happens.
  • For SL-L, set Trigger price as 95, and set Price column to some value less than or equal to 95, If you set something like 94.8 it is better.

What happens in SL-L order

What this means is when 95 or below reaches, your order gets triggered and a normal Limit Order at 94.8 will be placed. Since price is already 95 and you want to sell at 94.8, your order will immediately execute in the range of 95 --> 94.8 (usually if price stays at 95, it will execute at 95 itself. The reason why we are setting Price as 94.8 instead of 95 is, if suddenly price moves from 95.1 to 94.9, then your limit order placed at 95 would become useless, since 95 is higher price than current market price of 94.9. So your order will not execute and wait for 95 to reach again, and if price goes below that say 94.9-->94--->93--> etc very fast, you will incur huge loss.

So better place stop loss using SL-M, or give some gap between SL-L Price and Trigger.

If you sell first @100 and Buy later with Stop [email protected], use this same logic, but in reverse direction.